Business

Saturday October 24, 2009

Gen Y – technically savvy

By ELAINE ANG, LEONG HUNG YEE and LEE KIAN SEONG


ONE of the most distinctive features of the Generation Y (Gen Y) is that it is the most technically literate and technologically savvy generation.

The bold, brash and facebooking Gen Y, otherwise known as the millennials, tend to have a Blackberry in one hand, an ear to their iPhone and an eye on the latest gadget.

The definition of Gen Y varies but it is generally accepted as those born somewhere from the late 1970s to late 1990s.

Based on existing statistics, it is believed that around 40% of the Malaysian population falls within the age category of Gen Y.

Accenture Malaysia director of CRM management Lee Joon Seong says Gen Y is an important market segment for businesses globally because the Gen Y population is projected to hit two billion by 2010, representing 26% to 30 % of the total global consumer market.

“This means trillions of dollars to businesses worldwide,” he adds.

The sheer size of the Gen Y population and spending power are likely to shake up conventional business models.

PwC Advisory Services Malaysia executive director Lim Chin Han sees Gen Y as a major consumer influence.

“The sensation driven, on-the-go nature of the Gen Y means that companies have to be more innovative in getting their messages to stick.

“The good news is, once the Gen Y catches on to trends or fads, they will carry it through to their peers,” he says.

Companies are rushing to capitalise on the Gen Y’s mind share and purchasing power globally.

Lee cites an example, where Apple Computer created the 99-cent music download on iTunes that takes eight seconds for each download in response to Gen Y’s preference for “bite size chunk” and “instant gratification”.

This serves the need of Gen Y who wants speed and may not have large budgets.

On the local front, Malaysian companies are sensing the urgency of keeping up with the rest of the world.

Lim says: “A big trend over the past few years are businesses going online.

“These businesses understand that the fear factor attached to online spending is minimal, and can therefore offer a large variety of products and services via the web.”

He also suggests using mediums that are frequently accessed by Gen Y such as facebook, blogs or podcasts and build their offerings around that.

“Leverage on the Gen Y’s willingness to share information to get a good gauge on new consumer behaviours.

“For example, the CEO of an Indian telco, has a 25-year-old ‘Gen Y Mentor’, who keeps a pulse on the Gen Y’s needs and latest trends that gets fed back into product development,” he advises.

Economic boost

Economists also closely track Gen Y as a major determinant of a country’s growth trends and prospects.

To RAM Holdings Bhd chief economist Dr Yeah Kim Leng, the segment is an important business segment because a larger proportion comes from middle and upper income households, and therefore have higher spending power; a smaller family size which means generally higher spending per child; and greater exposure to global trends and events, through travelling abroad, overseas education as well as advancing information and communications technology (ICT), especially the Internet.

“The ICT industries have thrived on Gen Y’s computing and communications needs.

“The boom in information technology (IT) gadgets and consumer electronics as well as electronic channels of advertising, merchandising and delivery systems have been supported by this IT-savvy generation,” he says.

In addition, Yeah points out that there have been a mushrooming and upscaling of trendy outlets, fast food chains, side-walk and wi-fi cafes in the food and beverage and entertainment industries.

Another interesting trend in the economy are the Gen Ys themselves.

PwC’s Lim notes that Gen Ys are generally quite entrepreneurial in nature with access to substantial resources, not to mention insight into what their peers want.

“If they see an opportunity to provide a product or service, they may very well be the ones to do it,” he says.

Shaping the organisation

Gen Y people expect their work to accommodate their personal life, not vice versa. They are generally more vocal, demanding and in need of change than the preceding generations.

“Today’s corporations have to be ready for this. Many have to revisit their people management strategies and figure out how they can attract and retain a workforce that’s highly capable yet easily distracted.

“Companies with a large Gen Y workforce have in place many pull factors to attract and motivate them such as mobility programmes, open door policies and flexible working hours,” says PwC’s Lim.

Accenture Malaysia partner and director of talent and organisation performance management Low Choy Huat says leading companies are already adopting different strategies when recruiting Gen Y.

He adds that “recruitment marketing” is a new area where different media strategies are leveraged to attract Gen Y.

For example, social networking websites such as Facebook, LinkedIn and SecondLife are used to reach out to Gen Y in terms of company brand positioning, referrals and provide a feel for the potential work environment.

Kelly Services (M) Sdn Bhd vice president and country general manager Melissa Norman notes that as Gen Y grew up in a technologically stimulating environment, it is not surprising that they prefer work to be challenging and varied.

“They are also a hardworking bunch. However, it is only when work is meaningful to them,” she says.

Based on Kelly Services Employer Branding white paper, Building a strong employer brand – at all times for a sustainable organisation, Gen Y has a preference for smaller organisations where they feel that they can make a difference and get noticed.

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